U.S. Steel's Revised Contract Turned Down by USW

SEATTLE (Scrap Monster): United Steelworkers (USW) union turned down the revised contract proposal put forward by the Pittsburgh-based U.S. Steel management. Citing the proposal as a ‘clumsy and bad-faith’ attempt to appease the union, it warned of a possible strike action, which could be the first in more than three decades.

The revised 6-year contract proposal by U.S. Steel mentions $19,000 in guaranteed pre-tax cash payments. It also proposes 14% guaranteed base wage increase over the six-year agreement period-4% increase in first year, followed by 2% increase in each of the years from 2 to 6. This is 1% increase over the previous proposal, the company noted. In addition, it provides assurance on restarting EAF construction at Fairfield and retainment of Lorain Tubular Operations Assets. Further, it promises retirement benefit increases and no changes to current retiree healthcare plan.

The union prefers a contract for three to four years. It also calls for real wage increases, as the workforce has not received wage hike since 2015.

As per reports, steelworkers have already begun signing up for potential picketing shifts and making preparations for work stoppage, if no resolution is arrived at after negotiations. Meantime, U.S. Steel spokeswoman stated that talks will continue this week. The company will make all possible attempts to reach a mutually agreeable conclusion, she added.

Meantime, reports suggest that United Steelworkers International President Leo Gerard is most likely to meet with local union presidents in Downtown Pittsburgh.